Zanzibar’s sea transport issues drive up cost of doing business, say entrepreneurs

Unguja. Zanzibar faces significant challenges in sea transport, with a lack of direct shipping routes contributing to delayed cargo arrivals and escalating product costs.

Due to the type and size of cargo handled at Malindi port, many large vessels arriving from overseas first dock at Dar es Salaam and Mombasa in Kenya, forcing other ships to follow suit.

As a result, Zanzibar’s port experiences delays in unloading, further driving up costs for local businesses.

At the 16th Annual General Meeting of the Zanzibar National Chamber of Commerce (ZNCC) on March 18, 2025, local entrepreneurs discussed how this issue is affecting the cost of doing business on the island.

Karama Karama, a representative of the business community, highlighted the problems caused by the lack of direct sea transport for goods arriving from overseas.

“Many ships pass through Mombasa and Dar es Salaam, which leads to extended delivery times before the cargo reaches Zanzibar,” Karama said.

One of the primary reasons for the absence of direct shipping routes is the small volume of cargo unloaded on the island. Shipowners, therefore, perceive operations in Zanzibar as less profitable.

The minister for Transport, Prof Makame Mbarawa, acknowledged the issue during a report on the upcoming meeting of the Federation of Customs and Freight Forwarding Agents in Africa and the Middle East (Fiata-RAME 2025), which will be held on the island from April 30 to May 1.

He suggested that the current challenges could present investment opportunities in the sector.

“Ships coming from China to Dar es Salaam carry more than 10,000 containers, while those coming to Zanzibar carry only 100 containers,” Mbarawa said.

“The disparity in cargo volumes means higher costs for transportation. If we can increase the volume of cargo shipped directly to Zanzibar, these costs would decrease.”

Mbarawa said that the government’s role is to create an environment conducive to investment in direct shipping routes, enabling vessels to travel from Dar es Salaam to Zanzibar and thus reduce costs.

The minister of Works, Communications and Transport in Zanzibar, Dr Khalid Salum Mohamed, reported improvements at Zanzibar’s port over the past year. Previously, ships had to anchor for up to 40 days, but now, the average stay is reduced to just eight days.

However, the demand for goods in preparation for Ramadan has caused the time ships spend at anchor to rise, with ships now staying for an average of 18 days from January to March 2025.

Omar Said Shaaban, Zanzibar’s Minister of Trade and Industry Development, stressed that the country’s industrial growth would stall unless the transport challenges are addressed, particularly with regard to sea transport, which is vital for the import and export of goods.

“There is an urgent need for a genuine solution to these transport challenges, for the sake of both the business community and the nation as a whole,” Shaaban said.

Opening the meeting, Zanzibar’s Second Vice President, Hemed Suleiman Abdulla, acknowledged the Zanzibar National Chamber of Commerce’s critical role in advocating for improved business conditions. He emphasised the government’s commitment to working closely with the private sector to create a more conducive environment for trade and investment.

“The private sector is a key driver of economic growth and job creation. The government will continue to collaborate with all stakeholders to ensure Zanzibar becomes a hub for trade and investment in East Africa and beyond,” Abdulla said.

He also highlighted ongoing efforts by the government to strengthen laws governing the private sector, ensuring that they align with international standards.

Abdulla called on ZNCC leaders to promote integrity and ethical business practices to foster trust and accelerate investment in Zanzibar. He encouraged businesses to pay taxes voluntarily and on time, as this would help generate revenue for infrastructure development and social services.

Meanwhile, ZNCC Executive Director Hamad Hamad revealed that the chamber is working on a system to expedite the process of obtaining export certificates, which currently involves lengthy procedures.

Lilian Masalu, a representative of TradeMark Africa, spoke about the institution’s ongoing collaboration with the government and private sector to improve business infrastructure, remove barriers to trade, and strengthen policy frameworks.

Masalu noted that TradeMark Africa is dedicated to helping the private sector overcome operational challenges and enhance its performance.